Mitsubishi Heavy Industries (MHI) and Siemens have submitted a joint offer for Alstom's energy business, which could see MHI take a 20% stake in the French group's hydropower division.
Under the proposal, Siemens intends to acquire 100% of Alstom's gas business including related service contracts for €3.9B in cash.
Japan's MHI has offered €3.1B in cash for a 40% stake in Alstom's steam and nuclear business and 20% stakes in its grid and hydro businesses. MHI also intends to acquire up to a 10% stake in Alstom from the company's largest shareholder, Bouygues.
If the transaction goes ahead, and subject to regulatory considerations, Siemens will also explore opportunities with Alstom to create a European Champion in transport. At this stage Siemens said it would be prepared to becoming a long-term anchor shareholder in a combined transport business.
Siemens president Joe Kaeser commented: "This move would be a win-win solution for all related parties. Alstom would remain an independent energy and transport player with a strong brand." The transaction would also foster the creation of jobs in France, with around 1000 from the MHI-Alstom alliance.
Alstom received the proposal on 16 June and says it will be submitted to the Board of Directors in the coming days.
